A hotel that will help accommodate visitors coming into town for events at the PREMIER Center, Convention Center and Elmwood Golf Course broke ground Thursday morning.

The City of Sioux Falls is partnering with quest development of Aberdeen to develop a four acre hotel at the intersection of Russell St. and Western Ave.

The $12 million Holiday Inn hotel will have 116 rooms and a restaurant with a seating capacity of 300.

Developers say the new facility will help strengthen the city's application for future NCAA Men's Division I tournament bids.

"We know that this investment and others that will follow in the coming years will only strengthen our position as a national leader for athletic events and convention space,” says Director of Community Development Darren Ketcham.

This will be the 3rd hotel within the Sports and Entertainment District, and the third to open since the PREMIERE Center broke ground in 2012.